Analysis: The main reasons for the current Bitcoin price drop are the weakening of the early-year rally momentum, increased safe-haven sentiment ahead of the U.S. employment data release, and outflows from ETFs.

Jan. 8 (Decrypt) — As Bitcoin continues to slide, New Year’s optimism has nearly faded, with most gains from the first week of the year already retraced. Per CoinGecko data, Bitcoin is down 2.4% over the past 24 hours, currently trading at $89,881. Total crypto liquidations in the same period exceed $477 million. Illia Otychenko, Chief Analyst at CEX.IO, noted: “Bitcoin’s drop below $90,000 signals weakening momentum in the New Year’s market. Initial capital inflows in early 2026 and modestly bullish geopolitical news provided early support, but that momentum wasn’t enough to sustain a continued rebound.” Wenny Cai, COO of SynFutures, said: “Despite a strong start to 2026 and ongoing structural positives, Bitcoin has consistently struggled to hold above $90,000 — a trend driven by multiple factors. She pointed to rising global risk aversion, as investors await key macroeconomic indicators (including U.S. employment data) that are curbing risk appetite. This risk-off behavior has kept Bitcoin oscillating in the upper $90,000 range and occasionally dipping below the mark.” Otychenko also noted that U.S. spot Bitcoin ETFs saw fresh outflows, amplifying the recent pullback — with one day’s net outflows hitting $243 million.